More Ads to Accompany Increase in Online Video Viewing

Online video consumption is on the rise, in terms of both the number of people watching and the amount they are viewing, according to a report released by comScore, a marketing research company.

People are Watching Online Video

More than 88.6 million people watched online video on any given day in December 2010. While online viewers continue to spend much of their time on the popular online TV viewing site Hulu, which accounted for approximately 66 percent of all online TV viewing time in fourth quarter 2010, the top five networks (ABC, CBS, NBC, Fox and the CW), accounted for a combined 33 percent of viewing — a noteworthy 82 percent increase year-over-year.

An increase in Web video viewing has also led to an increase in the number of online ads users are viewing. According to reelseo.com, online video ads now reach 70 percent of online Americans, or 50 percent of all Americans, making Internet users an increasingly growing and key demographic for advertisers. That means viewers can likely expect an increase in the amount of video ads they see in 2011.

Ratio of Online Video Ads to Web video Content is Low

The ratio of online video ads to Web video content is by all advertising standards very low, with less than two percent of viewing time devoted to ads. Compare that to the 26 percent of time that is currently devoted to ads on regular broadcast TV. That means that for every 60 minutes of TV you watch online, less than 2 of those minutes are devoted to online video ads, compared with the roughly 18 minutes of ads you could expect to see while watching a 60-minute broadcast television program.

The increase in online viewing coincided, perhaps not surprisingly, with an increase in online consumer spending, which witnessed its biggest gains in travel (6 percent) and retail (10 percent), both clear indicators that consumer confidence is on the rise.

While time spent on Facebook, Google, and Yahoo! accounts for approximately 30 percent of Internet users’ time, comScore notes that “flash sales” sites —members-only websites selling high-end goods at deep discounts — have become among the hottest online trends in recent months. So, look for a proliferation of such sites in coming months.

Web Video Ad Growth to Continue

Online video ads will only continue to grow in 2011. To learn more about the increase in online video advertising, or for help creating a quality online video for your business, contact Fairfax Video Studio at 877-477-STUDIO.

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